Shares of Consolidated Water Co. Inc. CWCO shot up 8.2% toward a 15-year high in afternoon trading Wednesday, after the company’s announcement of a desalination contract in Hawaii prompted Janney analyst Michael Gaugler to turn bullish. The company announced late Tuesday that that its indirect subsidiary, Kalaeloa Desalco LLC, entered into a $204 million contract with the Honolulu Board of Water to build, operate and maintain a seawater reverse osmosis desalination plant. The contract has a base term of 24 years. Janney’s Gaugler raised his rating on the stock to buy from neutral and lifted his price target to $24 from $19, saying the deal marks the first U.S. desalination plant for the company, and should provide a “springboard” for other opportunities. The stock, which is on track to close at the highest price since Sept. 19, 2008, has soared 47.3% year to date, while the S&P 500 SPX has gained 11.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
